EIA crude oil inventories in the U.S. for the week ending Dec. 4 unexpectedly recorded an increase of 15.189 million barrels, compared to expectations of a decrease of 1.424 million barrels, with the value of the change in U.S. crude oil inventories reaching a new high since the week ending April 17 (34 weeks), released Wednesday night. Crude oil inventories in the Gulf Coast increased by 11.8 million barrels, the most on record.
WTI crude oil futures fell by $0.5 to $45.6/bbl and Brent crude oil futures fell by $0.4 to $48.98/bbl. The most active WTI crude oil futures contract on the NYMEX traded 7,875 lots in one minute at 23:30 GMT on Dec. 9, with the total value of the contract at more than $48.98/bbl. $350 million.
The EIA report also showed that U.S. gasoline inventories increased by 4.221 million barrels, compared to an expected increase of 2.271 million barrels, and the value of the change in U.S. gasoline inventories increased for the fourth consecutive week and was the highest since the week of April 17 (34 weeks); refined oil inventories increased by 5.122 million barrels, compared to an expected increase of 1.414 million barrels, and the value of the change in refined oil inventories was the highest since the week of June 5 (27 weeks). The Cushing, Oklahoma, crude oil inventories decreased by 1.364 million barrels, the third consecutive week of declining values.
In addition, U.S. domestic crude oil production decreased by 0.0 million barrels per day to 11.1 million barrels per day last week; U.S. crude oil exports decreased by 1.622 million barrels per day to 1.834 million barrels per day last week; commercial crude oil imports, excluding strategic reserves, decreased by 6.479 million barrels per day last week, an increase of 1.08 million barrels per day from the previous week; the four-week average supply of U.S. crude oil products was 18.93 million barrels per day, a decrease of 1.5 million barrels per day from the same period last year. 7.5%.
The financial blog Zero Hedge commented that the price of oil fell sharply in response to US Department of Energy data showing a 15.189 million barrel increase in crude oil inventories last week, as well as a significant increase in gasoline and refined oil production.
Energy analyst Fernando Valle warned that gasoline margins will continue to struggle as demand for gasoline continues to decline due to seasonal effects and embargoes, and we believe there will be further declines.
Diesel is also likely to come under pressure as air travel is expected to decrease during the holiday season and physical retail sales are falling much faster than online sales are picking up,” said analyst Benjamin Dow.
The EIA’s pessimistic report is a stark reminder of how volatile energy demand will remain until vaccines become widely available. gasoline inventory increases in early December are common for seasonal factors, but the size of the increase is important in these times of social distancing.
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